REG - S4 Capital PLC - Fourth Quarter Trading update

S4 CapitalAnnouncement

18/01/2023 07:00

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RNS Number : 0484N  S4 Capital PLC  18 January 2023

18 January 2023

 

 

S4 Capital plc

("S(4)Capital" or "the Company")

 

Fourth Quarter Trading update

 

In line with expectations

 

S(4)Capital plc (SFOR.L), the tech-led, new age/new era digital advertising,
marketing and technology services company, today confirms that trading in the
fourth quarter of 2022 was in line with expectations and therefore the Company
anticipates delivering at least £120 million of Operational EBITDA for full
year 2022.

 

The Company significantly improved Operational EBITDA margin performance in
the second half with like-for-like gross profit/net revenue growth also in
line with 25% guidance. As a result of improved liquidity, net debt is
expected to be well towards the lower end of the guided range of £130-170
million.

 

The annual results for 2022 are expected to be announced by Thursday 30th
March at the latest. The Company will provide a full outlook for 2023 at the
annual results.

 

Sir Martin Sorrell, S(4)Capital Executive Chairman said,

"We look forward to updating our shareowners on the progress with our results
in March. Most market commentators are now projecting high single digit growth
for digital advertising and high teens percentage growth for digital
transformation, which we believe we can continue to outpace, given our
addressable markets including Technology services and as we build further
momentum with our clients. Their priorities for 2023 seem to be focussed on
driving revenue growth through "lower funnel" performance and activation and
reducing cost through digital marketing transformation."

 

 

Enquiries to:

 

 S(4)Capital plc

 +44 (0)20 3793 0003

 Sir Martin Sorrell (Executive Chairman)

 Powerscourt (PR Advisor)
                         +44 (0)7970 246 725

 Elly Williamson/ Jane Glover

 

 

 

 

About S(4)Capital

 

S(4)Capital plc (SFOR.L) is the tech-led, new age/new era digital
advertising, marketing and technology services company, established by Sir
Martin Sorrell in May 2018.

 

Its strategy is to build a purely digital advertising and marketing services
business for global, multinational, regional, and local clients, and
millennial-driven influencer brands. This will be achieved by integrating
leading businesses in three practice areas: Content, Data&Digital media
and Technology services, along with an emphasis on "faster, better, more
efficient" executions in an always-on consumer-led environment, with a unitary
structure.

 

Digital is by far the fastest-growing segment of the advertising
market. S(4)Capital estimates that in 2021 digital accounted for over 60% or
$420-450 billion of total global advertising spend of $700-750 billion
(excluding over $500 billion of trade promotion marketing, the primary target
of the Amazon advertising platform) and projects that by 2022 total global
advertising spend will expand to $770-850 billion and digital's share will
grow to approximately 65% and by 2024 to approximately 70%, accelerated by
the impact of covid-19.

 

In 2018, S(4)Capital combined with MediaMonks, the leading AdAge A-listed
creative digital content production company led by Victor Knaap and Wesley ter
Haar and then with MightyHive, the market-leading digital media solutions
provider for future thinking marketers and agencies, led by Peter Kim and
Christopher S. Martin.

 

Since then, MediaMonks and MightyHive have combined with a number of companies
across Content, Data&Digital media and Technology services. For a full
list, please see the S(4)Capital website.

 

In August 2021, S(4)Capital launched its unitary brand by merging MediaMonks
and MightyHive into Media.Monks, represented by a dynamic logo mark that
features MightyHive's iconic hexagon. As the operational brand, Media.Monks
underpins S(4)Capital's agility, digital knowledge and efficiency and is the
next step in delivering on its foundational promise to unify
Content, Data&Digital media and Technology services.

 

Victor Knaap, Wesley ter Haar, Christopher Martin, Scott Spirit and Mary
Basterfield all joined the S(4)Capital Board as Executive Directors.
The S(4)Capital Board also includes Rupert Faure Walker, Paul Roy, Daniel
Pinto, Sue Prevezer, Elizabeth Buchanan, Naoko Okumoto, Margaret Ma Connolly,
Miles Young and Colin Day.

 

The Company now has approximately 9,000 people in 32 countries with
approximately 70% of revenue across the Americas, 20% across Europe, the
Middle East and Africa and 10% across Asia-Pacific. The longer-term objective
is a split of 60%:20%:20%. Content currently accounts for approximately 65% of
revenue, Data&Digital media 35% and Technology services 10%. The long-term
objective is a split of 50%:25%:25%.

 

Sir Martin was CEO of WPP for 33 years, building it from a £1 million "shell"
company in 1985 into the world's largest advertising and marketing services
company, with a market capitalisation of over £16 billion on the day he left.
Prior to that Sir Martin was Group Financial Director of Saatchi & Saatchi
Company Plc for nine years.

 

 LEI: 21380068SP9V65KPQN68

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